"We continue to allocate resources towards deepening customer engagement
within our key vertical markets, and we are pleased with our progress in
developing higher quality revenue opportunities," said Ilan Levin, Chief
Executive Officer of Stratasys. "In addition to these vertical market
initiatives, we are pleased with the market reception of our new F123
Series, launched in February of 2017, which has resulted in orders of
over 1,000 units to date, and has generated significant interest for
rapid prototyping applications among professional users."

Recent Business Highlights:

Announced new solution at the Paris Airshow for producing certifiable
aircraft interior parts which leverages a qualification program
underway with the FAA, National Institute of Aviation Research, and
America Makes. The Fortus 900mc Aircraft Interiors Certification
Solution consists of ULTEM 9085 thermoplastic, a new edition of the
Fortus 900mc Production 3D Printer with specialized hardware and
software designed to deliver highly repeatable mechanical properties
appropriate for aircraft interior part applications, and the
qualification processes and data to ease the certification process.

Showcased focus on the aerospace market with announcements of
Fortus 900mc Aircraft Interiors Certification Solution adoption by
leading parts supplier Western Tool & Mold to produce certifiable
aircraft cabin components, as well as collaborations to leverage
Stratasys 3D printing solutions to accelerate development and
production of next-generation aircraft with Boom Supersonic and
Eviation Aircraft.

Stratasys Direct Manufacturing chosen by Airbus to produce 3D
printed polymer parts for use on A350 XWB aircraft, including
non-structural parts such as brackets, and other parts used for
system installation.

Strengthened MakerBot's leadership in 3D printing for the education
segment with the announcement of My MakerBot, a Chromebook-compatible
in-browser platform for managing networked 3D printers and connecting
to Thingiverse, integration between My MakerBot and Autodesk
Tinkercad, and the new MakerBot Educators Guidebook, the definitive
how-to resource on 3D printing in the classroom.

"We have made significant progress in developing solutions that target
high-value applications within our targeted markets, and we continue to
focus on aligning our resources around this long term strategy,"
continued Levin. "We believe this strategy will allow us to help grow
the adoption of our products and services over time."

Financial Guidance:

Stratasys today reiterated previously provided guidance for 2017. The
Company's guidance for projected revenue and net income (loss) for the
fiscal year ending December 31, 2017 is as follows:

Revenue guidance of $645 to $680 million.

GAAP net loss guidance of $53 to $39 million, or ($1.00) to ($0.73)
per diluted share.

Non-GAAP net income guidance of $10 to $20 million, or $0.19 to $0.37
per diluted share.

Stratasys provided the following additional guidance regarding the
Company's projected performance and strategic plans for 2017:

Non-GAAP operating margin guidance of 3% to 5%.

Capital expenditures guidance of $40 to $50 million.

Given the expected ongoing negative impact of not recording a tax
benefit on U.S. tax losses on the Company's non-GAAP net income, the
Company believes that the rate of growth in its non-GAAP operating
income will be the best measure of performance.

Non-GAAP earnings guidance for 2017 excludes $34 million of projected
amortization of intangible assets; $18 to $20 million of share-based
compensation expense; $2 to $3 million in merger and acquisition related
expense; and $8 to $10 million in reorganization and other related
costs; and includes $3 to $4 million in tax expenses related to non-GAAP
adjustments.

Stratasys Ltd. Q2 2017 Conference Call Details

The Company plans to hold the conference call to discuss its second
quarter financial results on Wednesday, August 9, 2017 at 8:30 a.m. (ET).

To participate by telephone, the domestic dial-in number is (866)
394-5776 and the international dial-in is (409) 350-3596. The access
code is 48312906.

Investors are advised to dial into the call at least ten minutes prior
to the call to register. The webcast will be available for 90 days on
the "Investors" page of the Stratasys Web site or by accessing the
provided web address.

Stratasys
(NASDAQ: SSYS) is a global leader in applied additive technology
solutions for industries including Aerospace, Automotive, Healthcare,
Consumer Products and Education. For nearly 30 years, a deep and ongoing
focus on customers' business requirements has fueled purposeful
innovations—1,200 granted and pending additive technology patents to
date—that create new value across product lifecycle processes, from
design prototypes to manufacturing tools and final production parts. The
Stratasys 3D printing ecosystem of solutions and expertise—advanced
materials; software with voxel level control; precise, repeatable and
reliable FDM and PolyJet 3D printers; application-based expert services;
on-demand parts and industry-defining partnerships—works to ensure
seamless integration into each customer's evolving workflow. Fulfilling
the real-world potential of additive, Stratasys delivers breakthrough
industry-specific applications that accelerate business processes,
optimize value chains and drive business performance improvements for
thousands of future-ready leaders around the world.

Stratasys and Fortus are registered trademarks and the Stratasys signet
is a trademark of Stratasys Ltd. and/or its subsidiaries or affiliates.
All other trademarks are the property of their respective owners.

Cautionary Statement Regarding Forward-Looking Statements

The statements in this press release regarding Stratasys' strategy, and
the statements regarding its projected future financial performance,
including the financial guidance concerning its expected results for
2017, are forward-looking statements reflecting management's current
expectations and beliefs. These forward-looking statements are based on
current information that is, by its nature, subject to rapid and even
abrupt change. Due to risks and uncertainties associated with Stratasys'
business, actual results could differ materially from those projected or
implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to: potential declines in the
prices of our products and services, or volume of our sales, due to
decreased demand in the 3D printing market; any failure to adequately
adapt our infrastructure and properly integrate the internal and
external sources of our growth to generate intended benefits (including
from the companies that we recently acquired); changes in the overall
global economic environment; the impact of competition and new
technologies; changes in the general market, or in political and
economic conditions in the countries in which we operate; any
underestimates in projected capital expenditures and liquidity; changes
in our strategy; changes in applicable government regulations and
approvals; changes in customers' budgeting priorities; reduction in our
profitability due to shifting in our product mix into lower margin
products or our shifting in our revenues mix significantly towards our
AM services business; costs and potential liability relating to
litigation and regulatory proceedings; and those factors referred to in
Item 3.D "Key Information - Risk Factors", Item 4, "Information on the
Company", and Item 5, "Operating and Financial Review and Prospects" in
our 2016 Annual Report on Form 20-F, filed with the SEC on March 9,
2017, as well as in the 2016 Annual Report generally. Readers are urged
to carefully review and consider the various disclosures made throughout
(i) the Report on Form 6-K that attaches Stratasys' unaudited, condensed
consolidated financial statements as of, and for the quarter and six
months ended, June 30, 2017, and its review of its results of operations
and financial condition for those periods, which has been furnished to
the SEC on or about the date hereof, (ii) Stratasys' 2016 Annual Report,
and (iii) Stratasys' other reports filed with or furnished to the SEC,
which are designed to advise interested parties of the risks and factors
that may affect our business, financial condition, results of operations
and prospects. Any guidance provided, and other forward-looking
statements made, in this press release are made as of the date hereof,
and Stratasys undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.

Use of non-GAAP financial measures

The non-GAAP data included herein, which excludes certain items as
described below, are non-GAAP financial measures. Our management
believes that these non-GAAP financial measures are useful information
for investors and shareholders of our Company in gauging our results of
operations (x) on an ongoing basis after excluding merger and
acquisition related expense and reorganization-related charges, and (y)
excluding non-cash items such as stock-based compensation expenses,
acquired intangible assets amortization, impairment of goodwill and
other long-lived assets, changes in fair value of obligations in
connection with acquisitions and the corresponding tax effect of those
items. We also exclude, when applicable, non-recurring changes of
non-cash valuation allowance on deferred tax assets, as well as,
non-recurring significant tax charges or benefits that relate to prior
periods which we do not believe are reflective of ongoing business and
operating results. These non-GAAP adjustments either do not reflect
actual cash outlays that impact our liquidity and our financial
condition or have a non-recurring impact on the statement of operations,
as assessed by management. These non-GAAP financial measures are
presented to permit investors to more fully understand how management
assesses our performance for internal planning and forecasting purposes.
The limitations of using these non-GAAP financial measures as
performance measures are that they provide a view of our results of
operations without including all items indicated above during a period,
which may not provide a comparable view of our performance to other
companies in our industry. Investors and other readers should consider
non-GAAP measures only as supplements to, not as substitutes for or as
superior measures to, the measures of financial performance prepared in
accordance with GAAP. Reconciliation between results on a GAAP and
non-GAAP basis is provided in a table below.